(answered) – 1) Coffee Shop, located in Halifax, is Canada’s largest onlineDescriptionSolution downloadThe QuestionHey,I need help completing the questions in the attached document. Can you please complete all questions and round your calculations to TWO decimal places (e.g. 0.01), and explain/justify any assumptions made in your answers.1) Coffee Shop, located in Halifax, is Canada?s largest online retailer of coffee andcoffee equipment, and imports coffee beans from several countries. Coffee Shopoperates 250 days a year and sells an average of 120 kilograms of Geramo(Ethiopia) Fair Trade Organic beans a day. After ordering, beans are always shippedfrom Ethiopia within exactly 10 days. Annual holding costs per kilogram is estimatedto be 40% of the per kilogram cost of beans. The ordering cost is $20 per order. Thecost of a kilogram of coffee beans is $11.a.  What is the economic order quantity (EOQ) for Geramo Fair Trade Organic coffeebeans? What is the average inventory? What is the expected total number of ordersper year?b.  What are the total annual holding costs of the stock for Geramo Fair TradeOrganic coffee beans? What are the total annual ordering costs for Geramo FairTrade Organic coffee beans? Using an appropriately labelled diagram, graph setupcost, holding cost, and total inventory cost, and show the economic orderquantity (EOQ) and the minimum total inventory cost.c.  If Coffee Shop orders in quantities of 1200 kilograms or more, it can get a 1%discount on the (entire) cost of beans. Should Coffee Shop take the quantitydiscount? Would your answer change if the deal is for 1500 kilograms or more?1d.  The demand for the Geramo Fair Trade Organic beans is assumed to be normallydistributed with a variance of 400 kilograms per day. Assume that management hasspecified that no more than a 2% risk of stockout is acceptable.What is the standard deviation of demand during lead time?What is the safety stock needed to attain a 2% risk of stockout during leadtime?What is the demand during lead time?What should be the reorder point?What is the number of kanbans?2What is the annual holding cost of maintaining the level of safety stockneeded to support a 2% risk of stockout?2) George?s bakery prepares all its cakes between 4 am and 6 am. So they will be freshwhen customers arrive. Day old cakes are virtually always sold, but at a 50%discount of the regular price. The optimal service level is 90%. The cost of baking acake is $6, and demand is estimated to be normally distributed with a mean of 25and a standard deviation of 4.a.  Find the price a cake sells for.b.  Calculate the per cake cost of underestimating demand. Calculate the overagecost per cake.c.  Determine the optimal stocking level.d.  Calculate the stockout risk and the safety stock for the order level in 2(c).33) Blue Corporation, located in Jacksonville, is a world-class designer and diversifiedmanufacturer of precision metallic components and systems for the automotiveindustry, energy and mobile industrial markets. The company is a leading edgesupplier of engine, transmission, driveline, modules & systems and mobile aerialwork platforms. Blue Corp wants to determine the production order quantity for itsengines. Annual demand for engine is 160,000 units. Setting up equipment costs$2.75. The holding cost is $1.50 per engine per year. The company operates itsproduction facility 300 days per year. Blue Corp has a capability of producing 850engines per day. The cost of each engine is $3000.a.  Determine the production order quantity (POQ) and the number of orders. Whatis the total annual setup cost? What is the total holding cost per year? Using anappropriately labelled diagram, graph setup cost, holding cost, a
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